by JustForex
Yesterday, the US indices were trading in a narrow price range. This is not surprising as no one wants to take additional risk, and everyone was braced for the consumer price index data, which is an indicator of inflation. The US economists expect inflation to rise 0.4% in monthly terms and up to 4.8% annually. Core inflation is expected to be 3.4%. If the report turns out to be worse than those expectations, the market may react very negatively as investors will start to close their positions with the fears that the Fed will start to cut its stimulus measures earlier.
European indices were slightly lower on Wednesday. Today, the ECB will report on its interest rate. The European Central Bank does not plan to change its program of massive economic stimulation in the near future, so all attention of European investors is focused on inflation data from the US.
Inflation data will also influence gold prices. Rising inflation will push gold higher, while declining inflation may cause sales in precious metals. But investors should not expect a downtrend on gold as the US Treasury yield fell below 1.5%, and the gold has an inverse correlation to that indicator.
Crude oil inventory data showed weaker-than-expected demand for the fuel at the beginning of the peak summer season. Crude oil futures decreased by 0.8% on Wednesday. In India, the world’s third-largest oil consumer, fuel demand fell to its lowest level since last August in May.
Asian stock indices rose slightly on Wednesday but still trade in narrow ranges as investors await the US inflation data. Japan’s Nikkei and Australia’s ASX indices increased by 0.4% each. China’s blue-chip index CSI300 jumped by 0.9%. The Asian market is highly correlated with the US market now.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Main market quotes:
S&P 500 (F) 4,219.55 -7.71 (+0.18%)
Dow Jones 34,447.14 -152.68 (-0.44%)
DAX 15,581.14 -59.46 (-0.38%)
FTSE 100 7,081.01 -14.08 (-0.20%)
USD Index 90.15 +0.07 (+0.08%)
- – Australia MI Inflation Expectations (m/m) at 04:00 (GMT+3);
- – ECB Interest Rate Decision (m/m) at 14:45 (GMT+3);
- – ECB Monetary Policy Statement (m/m) at 14:45 (GMT+3);
- – ECB Press Conference at 15:30 (GMT+3);
- – US Consumer Price Index (m/m) at 15:30 (GMT+3);
- – US Core CPI (m/m) at 15:30 (GMT+3);
- – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
- – Natural Gas Storage (w/w) at 17:30 (GMT+3);
- – US 30-y Bond Auction at 20:01 (GMT+3).
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
- COT Bonds Charts: Speculator Weekly Changes led by 5-Year & 10-Year Bonds Apr 28, 2024
- COT Stock Market Charts: Speculator Bets led by VIX & Russell-Mini Apr 28, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Soybean Meal Apr 28, 2024
- Today, investors’ focus is on the PCE Price Index inflation report Apr 26, 2024
- Gold price recovers amid uncertain US economic outlook Apr 26, 2024
- This “Bullish Buzz” Reaches Highest Level in 53 Years Apr 26, 2024
- FastSpring and EBANX Forge Partnership to Expand Pix Payments for Digital Products in Brazil Apr 25, 2024
- Target Thursdays: NAS100, Robusta Coffee, USDCHF Apr 25, 2024
- QCOM wants to create competition in the AI chip market. Hong Kong index hits five-month high Apr 25, 2024
- Japanese yen hits all-time low as BoJ meeting commences Apr 25, 2024